A coalition of four prominent Philippine governance and finance organizations has expressed serious concern over recent leadership disputes at the Government Service Insurance System (GSIS), urging immediate measures to strengthen corporate governance across all state-owned enterprises.
The Institute of Corporate Directors (ICD), the Financial Executives Institute of the Philippines (FINEX), the Institute for Solidarity in Asia (ISA) and the Justice Reform Initiative (JRI), in a joint statement, voiced alarm over reported conflicts between the GSIS president and general manager (PGM) and members of the board of trustees (BOT).
The groups specifically cited disputes over significant investment decisions and the scope of executive authority, saying the conflict “challenges the core principles of fiduciary duty, transparency, and oversight of the board.”
The resignation of trustees and the subsequent entrustment of the allegations’ veracity to the Ombudsman highlight a critical need for resolution, the organizations said in a joint statement.
Their foremost concern is that these internal disputes may erode public confidence, thereby undermining trust in the fund’s stability.
The coalition views the GSIS situation as a critical opportunity to reinforce governance standards across all government-owned or -controlled corporations (GOCCs). They strongly recommended immediate adoption of four key measures.
First, the authority of the Board of Trustees in setting major policy and approving significant, high-risk, or non-standard investments must be unambiguous and paramount.
Second, the dual accountability of GOCC executives—to the appointing power and to the Board—must be managed through clear, enforceable internal governance structures that prioritize fiduciary duties.
Third, all GOCCs must operate with the highest level of transparency in all financial and investment dealings. Protocols must be tightened to prevent any action that undermines board oversight.
Finally, the organizations urged the GSIS leadership and relevant oversight bodies such as the Governance Commission for GOCCs to facilitate a comprehensive, impartial review to restore clarity regarding authority and accountability.
The groups affirmed their stance for strong corporate governance.
“The sound, ethical and transparent management of public funds by all GOCCs is non-negotiable for securing the nation’s future and ensuring the trust of the Filipino people,” they said.
